Employment tribunal: James Bagshawe claims he lost his position as chief operating officer at Gatehouse Bank because he wasn't Muslim

A British banker claims he lost his £185,000-a-year job with a Kuwaiti-owned investment bank because he wasn’t a Muslim.

James Bagshawe, 53, was the Chief Operating Officer of the Gatehouse Bank when he was suddenly made redundant while on holiday in August 2011.

He claims he was replaced by the less experienced Twalha Dhunno, who was a Muslim.Mr Bagshawe, from Gravesend, Kent, who was a founding member of the bank, said: ‘I feel that I have been badly treated by Gatehouse and its Board.

'I was a founding member of the executive team when Gatehouse was set up and for over four years I committed a great deal of time and energy to trying to make it succeed.

‘The manner of my dismissal on holiday can only be described as an unnecessary and vindictive, and it leaves a very sour taste in my mouth.’

At an Employment Tribunal in London yesterday Mr Bagshawe, from Kent, admitted the bank had struggled as a result of the credit crunch and staff had been laid off.

Despite Gatehouse never making a profit during the four years he spent at the bank Mr Bagshawe was paid more than £1m in salary and bonuses over the period.

The bank operated under Sharia law, which has strict rules over issues such as charging interest on loans.

He claimed his relationship with his bosses began to turn sour when he raised concerns about a proposed £100m investment from the Kuwaiti Investment Agency (KIA).

He said the deal was done by the bank’s chairman, Fahed Boodai, and Mr Dhunnoo who was at the time his junior. He claimed he and other UK-based executives were kept in the dark about what was going on.

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Mr Bagshawe said: ‘Based on my
assessment of our respective experience and skills I did not see there
was any rational reason for the difference in treatment.

‘I remain of the view that my race,
nationality, ethnic background or religion or belief may have been a
factor in my dismissal, and do not believe that Gatehouse has provided
any evidence to rebut this view.’

Gatehouse Bank deny the allegations
and say Mr Bagshawe’s position remains redundant a year after he left
the company and there are no proposals to appoint a successor.

It also claims the FSA did not
recognise his approach to them as ‘whistleblowing’ and that Mr Bagshawe
had agreed the KIA investment at a board meeting.

They also say there is no evidence that Mr Bagshawe has been discriminated against because of his race or religion.

The tribunal continues and is expected to last 12 days.

Last night a spokesman for the bank
said: ‘Mr Bagshawe was made redundant by the CEO a Christian. His appeal
was heard by a non-executive director, another Christian. His
redundancy was supported by the Board comprised equally of Christians
and Muslims.

‘The Bank categorically denies that
there was any relationship whatsoever between Mr Bagshawe’s religion and
the decision to make him redundant.

‘As COO, Mr Bagshawe was well paid
during his 4 year term, earning in excess of £1million. Yet by December
2010, during his tenure, the company was eroding £1million per month of
its working capital.

‘The company all but halved its
headcount from 40 in November 2009 to 25 in June 2011. Nonetheless, Mr
Bagshawe received an enhanced redundancy package and pay in lieu of
notice in compensation for his loss of office, equivalent to double the
average Londoner’s annual salary.

‘He was also entitled to keep over a third of a million shares.

‘Gatehouse Bank had, and has, a
diverse workforce including individuals who hold the Christian, Muslim
and Hindu faiths, among others. Claims that Mr Bagshawe has been
discriminated against or that he “blew the whistle” are strongly
contested.’